Auto insurance premiums have skyrocketed in Ontario in the past few years. According to the Financial Services Commission of Ontario (FSCO), auto insurance premiums in the province increased by an average of 5.6 percent in 2008, 8.8 percent in 2009 and 6.2 percent in 2010. Since the reported rate changes are averages, your rate change may be higher or lower than average. As I reported here and here, the auto premiums for our household went up 22 percent in 2010 followed by another increase of 7.6 percent in 2011. Note that since most drivers renew their auto insurance annually, it may take up to a year for the rate changes approved by FSCO to take effect.
Our auto insurance renewal notice for 2012 arrived in the mail recently. The good news is that our auto insurance premium for the exact same coverage and driving record as last year is lower by 8 percent. I count myself lucky because Nordic Insurance Company, which is the underwriter of our policy increased rates by an average of 7 percent in 2011.
According to FSCO, auto insurance premiums went up by an average of 5 percent in 2011, a lower increase than previous years. It appears that new regulations capping accident benefits implemented by the Ontario Government in September 2010 are taking effect. The bad news is that you may still be hit with a hefty increase. Some insurance companies have received approvals for rate hikes of as much as 13 percent. If you are among the unlucky ones, be sure to shop around, review your insurance coverage, consider increasing the deductible and make sure you are getting all the discounts you are eligible for.
